Which of the following actions by management would reduce an employee's opportunity to commit fraud?

• A.Eliminating bonuses tied to sales or other performance goals.
• B.Establishing physical controls over company assets.
• C.Identifying consequences, such as termination, for fraudulent activities.
• D.Defining ethical behavior expectations in the company handbook.

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The final internal audit report should be distributed to which of the following individuals?

• A.Audit client management only
• B.Executive management only
• C.Audit client management, executive management, and others approved by the chief audit executive.
• D.Audit client management, executive management, and any those who request a copy.

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Which of the following would be the most effective method to prevent installation of new equipment that does not meet environmental permit requirements, or to prevent modification of current processes in such a way that they no longer meet permit requirements?

• A.Require that the environmental compliance department perform regular inspections of the manufacturing facility to identify new equipment or process modifications in progress.
• B.Rely on annual inspections by various regulatory agencies to identify equipment or processes that require a permit.
• C.Require that the staff of the environmental compliance department attend monthly safety meetings in different parts of the facility so that they can hear directly from the workers about any changes.
• D.Include the environmental compliance department in the review of proposed process changes and equipment purchases affecting permit requirements.

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The chief audit executive (CAE) of an organization has established an internal audit activity (IAA) quality assessment program. According to IIA guidance, which of the following would be part of this program?

• A.Compliance with a checklist of required audit procedures, and identified areas of improvement reviewed at the end of the year.
• B.Compliance with a checklist of required audit procedures, and review of individual audits to determine the quality and timeliness of supervision.
• C.Assessment of the IAA conducted independently of client feedback, and the review of individual audits to determine the quality and timeliness of supervision.
• D.Assessment of the IAA conducted independently of client feedback, and identified areas of improvement reviewed at the end of the year.

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An internal auditor conducted interviews with several employees, documented the interviews analyzed the summaries, and drew a number of conclusions. What sort of audit evidence has the internal auditor primarily obtained?

• A.Physical evidence
• B.Documentary evidence
• C.Analytical evidence
• D.Testimonial evidence

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